Gold Tests $3,300 Resistance as Tariff Threats and War Escalation Fuel Safe-Haven Buying

Spot gold advanced 0.5% to $3,305.85 per ounce during Monday’s Asian session as escalating geopolitical tensions and fresh tariff concerns drove investors toward precious metals.

US gold futures climbed 0.4% to $3,307.80, with the metal approaching the critical $3,300 psychological resistance level that technical analysts have been monitoring.

The precious metal’s ascent came as Russia launched its largest aerial assault of the war on Ukraine while President Trump announced plans to double tariffs on imported steel and aluminum from 25% to 50%.

These developments prompted warnings from the European Commission that Europe stands ready to retaliate against any trade escalation.

Tim Waterer, chief market analyst at KCM Trade, explained the market dynamics: “Given the resurgence of trade and geopolitical concerns, it’s not surprising to see gold gaining traction at the start of the week.

Risk assets are facing challenges, and a decline in the dollar is also providing support for gold.” The US dollar index weakened 0.2%, making gold more affordable for international buyers and providing additional support for the precious metal.

Currency weakness combined with safe-haven flows created favorable conditions for gold’s advance through the Asian trading session. Technical analysis reveals gold testing descending channel resistance while forming a short-term reversal pattern near the $3,300 mark.

The metal trades around a key pivot point at $3,297.42, with immediate support levels identified at $3,237.84 and $3,185.98. Resistance levels extend to $3,349.27, then $3,408.85 and $3,460.71 near previous highs.

Moving averages continue pointing to an underlying uptrend despite recent consolidation within a bearish correction channel. The Relative Strength Index suggests potential for a bounce from oversold levels, though analysts anticipate testing of support near $3,195 before any sustained advance.

Asian markets demonstrated strong physical demand, with Indian gold prices rising across all categories. Twenty-four karat gold increased ₹33 to ₹9,764 per gram while twenty-two karat gold gained ₹30 to ₹8,950 per gram.

This price action reflects solid underlying demand from the world’s second-largest gold consumer. Vietnam’s domestic market showed significant premiums over international prices, with SJC gold bars trading at 115.7-118.2 million VND per tael.

This represents approximately 14.04 million VND above international gold prices, indicating strong local demand and supply constraints.

Fed Chair Jerome Powell’s scheduled appearance today adds another element of uncertainty as markets await guidance on monetary policy direction.

Governor Christopher Waller recently suggested rate reductions remain possible later this year, though Trump administration tariff policies may temporarily increase inflationary pressures.

The convergence of geopolitical tensions, trade policy uncertainty, and technical resistance testing creates a complex environment for gold traders.

Current price action suggests the market remains sensitive to safe-haven flows while technical levels around $3,300 continue providing resistance to further advances.

Market participants now watch for sustained breaks above channel resistance or potential reversals that could test lower support levels in coming sessions.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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